SCOTUS Uncertainty Deters Innovation
I can't disagree with any of that, but even outside of the nonprofit sector, which Moody's monitors closely because it rates the creditworthiness of such institutions for bond buyers, uncertainty creates a vacuum for innovation.
Generally, consolidation in the healthcare industry continues apace, but that doesn't represent innovation. Rather, in many cases it represents defensive posturing and vertical integration strategies to better insulate against threats to revenue and margin. These not only rise from the law, but from nimble competitors in the private market that seek to carve out their niche of profitability in the rapidly shifting healthcare playing field.
One could argue that the decision will remove a lot of uncertainty in the market, but that's true only if you don't already have anything invested in meeting any of the possible outcomes. Most hospitals and health systems have invested heavily in gearing up for the changes, some of which have already been implemented. What's the cost of recalibrating expectations, the cost of waiting for another Congress to take up and address what the Supreme Court deactivates?
It's high, and it doesn't do anything to address the affordability or safety of healthcare.
Philip Betbeze is senior leadership editor with HealthLeaders Media.
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